Empowering Online Retailers: Why We Invested in ReturnLogic
Like many of our best deals, the returns management ecommerce platform ReturnLogic came to join our portfolio through trusted partners we co-invest and collaborate with. Amplify’s Paul Bricault was the first to introduce us to ReturnLogic’s founder Peter Sobotta in 2017.
We immediately realized that Peter is exactly the kind of leader we want to support. He is a Navy veteran who nurtures company culture through military leadership. He is thoughtful and deliberate, and his passion about his product is rooted in years of experience in reverse logistics in both military and entrepreneurship.
Moonshots Capital’s investment in ReturnLogic was a long time coming. The company was too early in its development back in 2017 to fit our investment thesis. We passed on the deal and waited.
When Peter contacted us again in 2021, we introduced the deal to Blair Garrou of Mercury Fund, a co-investor in our Fund II superstar Cart.com. Blair has superb knowledge of ecommerce and reverse logistics, so when he leaned in enthusiastically to lead the round, it added to our existing conviction in Peter and ReturnLogic.
ReturnLogic addresses a burning problem in the era of rising ecommerce: the 20–30% rate of online returned purchases that cost retailers $212 billion in 2022 alone. Retailers who sell online are actively looking to optimize their returns operations and reduce costs while keeping consumers happy, but adoption of dedicated returns software is still in its early days.
ReturnLogic aims to maximize its share of the blue ocean market by providing a platform that unifies all components in the complex returns process: customer service, returns processing, warehouse management, business management, and marketing.
Peter knows his customers’ challenges first-hand. During his military service, he spent 11 years as a Supply Corps Officer and Intelligence Specialist. His focus on reverse logistics of Navy assets laid the groundwork for his first venture. In 2004, he founded RecoupIT, a solution that offered warehouse management, asset recovery, and data security.
He understands the equal importance of customer satisfaction and a smooth operational workflow. He deploys this extensive domain expertise to make ReturnLogic stand out among competition as a holistic solution that uses APIs to integrate with all other tools used by retail businesses and supports cross-team synergy.
Moonshots Capital was proud to participate in the $7.3 million Series A round led by Mercury and joined by Amplify.LA, Ben Franklin Technology Partners, Cultivation Capital, Rise of the Rest, SaaS Ventures, Springtime Ventures, RevTech Ventures, and White Rose Ventures. Additionally, I will be joining the board in an observer capacity.
We look forward to witnessing and supporting Peter’s leadership of ReturnLogic as it continues to refine its product and scale its operations.
Moonshots Capital is a veteran-founded venture capital firm that invests in early-stage startups with extraordinary leaders.
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